Scatec ASA — Interim / Quarterly Report 2018

Jul 20, 2018

Oslo, July 20, 2018

Disclaimer

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The following presentation may include information related to investments made and key commercial terms thereof, including future returns. Such information cannot be relied upon as a guide to the future performance of such investments. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Scatec Solar ASA or any company within the Scatec Solar Group. This presentation contains statements regarding the future in connection with the Scatec Solar Group's growth initiatives, profit figures, outlook, strategies and objectives as well as forward looking statements and any such information or forward-looking statements regarding the future and/or the Scatec Solar Group's expectations are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

Agenda

• Highlights and project update

Raymond Carlsen, CEO

• Financial review

Mikkel Tørud, CFO

• Summary and Outlook

Raymond Carlsen, CEO

The 162 MW Apodi project in Brazil

Ramping up construction and increasing backlog and pipeline

• Q2'18 proportionate revenues of NOK 1,229 million and EBITDA of NOK 266 million
• D&C revenues at NOK 1,045 million and EBITDA of NOK 140 million – reflecting a significant step up in construction activities
• Secured 117 MW in Argentina and 130 MW in Ukraine – total backlog & pipeline reached 4.5 GW
• Targeting 3.5 GW by end of 2021
• Gross NOK 600 million of equity raised through a private placement

The 197 MW Quantum project in Malaysia

Construction progressing well – six projects totalling 1,092 MW

Malaysia, 197 MW Brazil, 162 MW Honduras, 35 MW

Egypt, 400 MW Mozambique, 40 MW South Africa, 258 MW

Secured 117 MW in Argentina and 130 MW in Ukraine

Argentina, 117 MW

• 20 year PPA with CAMMESA
• SSO 50%, Equinor 50%
• Capex: USD 95 million

Comments

• SSO & Equinor 50/50 joint venture to build, own and operate the plant
• Equinor to provide construction financing
• Target construction start in 2H 2018

Ukraine, 130 MW

• 10 year Feed in Tariff
• SSO 70%, partners 30%
• Capex: EUR 137 million

Comments

• Project finance to be provided by European Bank of Reconstruction and Development and partners
• Target construction start in 2H 2018

Project backlog and pipeline increased by 0.5 GW to 4.5 GW

Financial review

Mikkel Tørud, CFO

EBITDA up significantly year on year – step change in construction activities

Power Production Unchanged EBITDA year on year - stable operation and same asset base

Operation & Maintenance Growth in EBITDA year on year after catch up of O&M revenues in Jordan

Development & Construction A significant step change in construction activities

Raised gross NOK 600 million of equity to fund further growth

• Gross NOK 600 million of equity raised through a private placement – funding further growth
• NOK 500 million available through undrawn credit facilities
• Cash position of NOK 2,429 million of which NOK 1,005 million at the group level
• Group* book equity strengthened to NOK 2,804 million equity ratio of 79%

NOK million	Consolidated	SSO prop. Share	Group level*
Cash	2,429	1,879	1,005
Interest bearing liabilities*	-7,013	-4,391	-742
Net debt	-4,584	-2,512	263

Consolidated financial position (NOK million)

Current assets Non-current assets Equity Current liabilities Non-current liabilities

Q2'18 movement of free cash at group level

New investments generate significant value from D&C and power production

	In operation	New capacity for 1.5 GW	New capacity for 3.5 GW	Total
Capacity (MW), 100%	322	1,183	2,000	3,500
Capex (NOK million), 100%	5,100	12,900	14,000 – 17,000	32,000 – 35,000
Key figures - SSO proportionate:
SSO's economic interest	46%	57%	50% – 70%	50% – 70%
SSO's equity investments (NOK million)	800	1,850	2,000 – 2,500	4,600 – 5,200
Development & Construction CF to equity (NOKm)		950 – 1,050	1,000 – 1,500	2,000 – 2,500
Annual cash flow to equity Power P. & O&M (NOKm)	170	260 – 310	300 – 400	750 – 850
Average equity value per MW (NOK million)		2.1	1.5	1.7

Summary and Outlook

Raymond Carlsen, CEO

Accelerating growth

Effective execution of current project portfolio

Secure growth in priority regions

Broaden commercial and technology scope

Optimise financing and asset portfolio to enhance value

Targeting 3.5 GW by end of 2021

We will more than double installed capacity

Targets and guidance

Consolidated profit & loss

NOK MILLION	Q2 18	Q2 17	YTD 18	YTD 17	FY 17
Total revenues and other income	286.3	278.9	575.1	555.1	1,491.5
OPEX	-74.1	-61.8	-150.6	-115.8	-250.2
EBITDA	212.2	217.1	424.5	439.3	1,241.3
Depreciation, amortization and impairment	-62.0	-66.0	-124.7	-128.0	-248.1
Operating profit	150.2	151.1	299.9	311.4	993.2
Interest, other financial income	130.4	16.6	146.0	29.8	51.2
Interest, other financial expenses	-129.6	-130.4	-254.8	-257.8	-523.8
Foreign exchange gain/(loss)	1.2	-37.9	-22.4	-46.3	-59.8
Net financial expenses	2.0	-151.7	-131.2	-274.3	-532.3
Profit before income tax	152.2	-0.7	168.7	37.1	460.9
Income tax (expense)/benefit	-50.2	2.2	-54.6	-4.6	-23.0
Profit/(loss) for the period	102.0	1.5	114.0	32.5	437.9
Profit/(loss) attributable to:
Equity holders of the parent	97.8	-12.7	80.1	-9.0	339.1
Non-controlling interests	4.2	14.1	33.9	41.6	98.8
Basic and diluted EPS (NOK)	0.93	-0.12	0.77	-0.09	3.36

Consolidated cash flow statement

NOK MILLION	Q2 18	Q2 17	YTD 18	YTD 17	FY 17
Net cash flow from operations	303.7	215.3	1,003.9	477.3	844.1
Net cash flow from investments	-788.7	-101.7	-1,808.4	145.7	-874.1
Net cash flow from financing	411.9	-360.5	382.4	-162.5	1,639.8
Net increase/(decrease) in cash and cash equivalents	-73.0	-246.9	-422.1	169.1	1,609.8
Effect of exchange rate changes on cash and cash equivalents	-27.0	-6.8	-11.6	2.5	116.1
Cash and cash equivalents at beginning of the period	2,529.4	1,562.5	2,863.1	1,137.2	1,137.2
Cash and cash equivalents at end of the period	2,429.4	1,308.8	2,429.4	1,308.8	2,863.1

A significant increase in D&C activities

Q2 2018	Power	Operation &	Development &
NOK MILLION	Production	Maintenance	Construction	Corporate	Total
Revenues	150	30	1,045	4	1,229
Gross margin	150	30	167	4	351
EBITDA	121	19	140	-14	266
EBIT	82	19	139	-14	226
EBIT (%)	55%	63%	13%	-	18%

Q2 2017	Power	Operation &	Development &
NOK MILLION	Production	Maintenance	Construction	Corporate	Total
Revenues	145	19	-	3	167
Gross margin	145	19	-	3	167
EBITDA	121	10	-18	-14	100
EBIT	80	10	18	-14	58
EBIT (%)	55%	53%	-	-	35%

Segment results – Q2'18

			PROPORTIONATE			RESIDUAL
NOK MILLION	POWER PRODUCTION	OPERATION & MAINTENANCE	DEVELOPMENT & CONSTRUCTION	CORPORATE	TOTAL	OWNERSHIP INTERESTS	ELIMINATIONS	CONSOLIDATED
External revenues	142.4	-	-	-	142.4	130.7	-	273.1
Internal revenues	7.3	30.1	1,044.8	4.1	1,086.3	55.6	-1,141.8	-
Net gain/(loss) from sale of project assets	-	-	-	-	-	-	-	-
Net income from JV and associated companies	-	-	-	-	-	-	13.2	13.2
Total revenues and other income	149.7	30.1	1,044.8	4.1	1,228.7	186.2	-1,128.6	286.3
Cost of sales	-	-	-877.9	-	-877.9	3.8	874.2	-
Gross profit	149.7	30.1	166.9	4.1	350.8	190.0	-254.5	286.3
Personnel expenses	-4.0	-5.4	-12.1	-8.6	-30.2	-	-	-30.2
Other operating expenses	-24.9	-5.8	-14.7	-9.2	-54.6	-23.0	33.6	-44.0
EBITDA	120.8	18.9	140.1	-13.8	266.0	167.0	-220.8	212.2
Depreciation and impairment	-38.7	-0.2	-1.1	-0.4	-40.4	-38.2	16.7	-62.0
Operating profit	82.2	18.7	139.0	-14.3	225.6	128.7	-204.2	150.2

Project companies' financials – Q2'18

	CZECH
NOK MILLION	REPUBLIC	SOUTH AFRICA	RWANDA	HONDURAS	JORDAN	OTHER	TOTAL
SSO economic interest	100%	39%	54%	40%	60%
Revenues	43	63	3	10	24	6	149
OPEX	-3	-9	-	-2	-6	-7	-29
EBITDA	40	53	2	9	17	-1	121
Net interest expenses	-5	-29	-2	-3	-7	4	-41
Normalised loan repayments	-7	-14	-2	-4	-7	-	-34
Normalised income tax payments	-5	-2	-	-	-	-1	-8
Cash flow to equity*	24	7	-1	1	3	2	36

Q2'18 - Consolidated & proportionate financials